Business Standard Motoring - Skoda Auto, a Volkswagen subsidiary, plans to launch a mini-sports utility vehicle (SUV) priced below Rs 10 lakh. This is the first time a global company is looking to introduce an SUV in this price segment.
Big international companies such as Mitsubishi, Toyota, General Motors, Hyundai and Skoda sell SUVs in India, but at prices above Rs 15 lakh. The Skoda product will directly challenge Indian companies, which offer cheaper options. Mahindra & Mahindra's Scorpio is priced between Rs 7.43 lakh and Rs 12.39 lakh, while Tata Motors' Safari Dicor costs between Rs 8 lakh and Rs 13 lakh.
Skoda's new SUV could also pose a challenge in the luxury mid-sized sedan market, which includes Honda City, Volkswagen Vento and Hyundai Verna.
Thomas Kuehl, a member of the board in charge of sales and marketing, Skoda Auto India, said: "The SUV segment is not growing as fast as was expected. We have to go down and are looking at a product priced below Rs 10 lakh." Kuehl, however, did not say by when the model would be launched.
"We have over 25 per cent share in the D segment with Superb and 16.5 per cent share in the segment that has Laura. We are working to increase our presence in the SUV category," said Kuehl.
